Enko Capital Managers has acquired a minority stake in Madison Financial Services PLC, a leading insurance-based financial services group in Zambia, marking a strategic investment in the country's growing financial sector.

Information on the Target

Enko Capital Managers ("ECM") has announced the acquisition of a minority stake in Madison Financial Services PLC ("MFS Plc"), a prominent insurance-based financial services group operating in Zambia. Established in 1992, MFS Plc was Zambia's first private insurance company and has since diversified its operations to include general insurance, life insurance, asset management, and microfinance. With a revenue generation of approximately US$64 million, MFS Plc has established itself as one of the top three players in both general and life insurance sectors in the country. The company maintains a robust footprint with 31 branches in Zambia and five in Tanzania, employing around 400 staff members.

Over the past three years, MFS Plc has sustained impressive growth rates, with average annual revenue growth of 16% and nearly tripling its operating profits. This growth is attributed to the company's well-established market presence and ability to meet the expanding demand for a variety of financial products, such as insurance, pensions, and investment services, as well as microfinance solutions for small businesses. In 2014, MFS Plc enhanced its visibility and reputation by listing on the Lusaka Stock Exchange, leveraging its strong brand and investor confidence.

Industry Overview in Zambia

The Zambian insurance industry has undergone significant transformations in recent years, marked by increased competition and a growing recognition of the importance of insurance products in financial planning. This shift reflects a broader